ASHLAND, Kentucky – January 25, 2016 - TX Holdings, Inc. (OTC Markets PINK: TXHG), a supplier of mining and rail products to the U.S. coal mining industry, today announced financial results for its 2016 first fiscal quarter. During the 2016 first fiscal quarter, the company reported quarterly revenue of $782,265, a 22.1% increase when compared to the same quarter in the prior year. Net income for the first quarter of fiscal 2016 was $30,632, an increase of $175,915 when compared to a net loss of $145,283 for the prior year.
Mr. Shrewsbury, the company’s CEO and Chairman, stated that
“We are pleased with our quarterly results, especially since this is the first recent quarter in which we have reported net income. Considering the continued weakness in our industry, we have focused on expanding our customer base and introducing new product lines, while at the same time keeping our costs down and controlling our overhead. Based on the simple fact that our industry is an important and integral part of the U.S. economy, we are optimistic that our industry will recover and we are well positioned through our products pricing and quality and low cost structure to fully participate and remain profitable as we continue to grow our business.”
First Fiscal Quarter of 2016 - Financial Summary
Revenue for the three months ended December 31, 2015 was $782,265 as compared to $640,788 for the same period in the prior year, an increase of $141,477 or 22.1%.
Cost of goods sold was $543,846 as compared to cost of goods sold of $523,346 for the same quarter in the prior year, an increase of $20,500 or 3.9%.
Gross profit for the quarter ended December 31, 2015 increased as a percentage of revenue from 18.3% to 30.5% when compared to the same period the prior year.
Operating expenses for the three months ended December 31, 2015 were $174,254 as compared to $237,250 for the three months ended December 31, 2014, a decrease of $62,996 or 26.6%. Commission expense was $27,831 compared to $40,573 the same period in the prior year, a decrease of $12,742 or 31.4%. Other operating expenses decreased by $31,136 or 20.2% compared to the same period in the prior year.
Income from operations for the quarter ended December 31, 2015, was $64,165, when compared to a loss from operations of $119,808 in the same period in the prior year.
Net income was $30,632, compared to a net loss of $145,283, incurred in the first fiscal quarter of 2015.
At December 31, 2015, cash and cash equivalents were $2,000 compared to $61,564 at September 30, 2015. Net cash used in operating activities was $86,599 during the three months ended December 31, 2015. Net cash used in operating activities was $151,084 during the same three months period in the prior year. There was no cash flow from investing activities for the three months ended December 31, 2015, as compared to cash flow used in investing activities of $1,102 during the same period in the prior year. During the three months ended December 31, 2015, net cash provided by financing activities was $27,035 due to an increase of a stockholder’s advance by $33,000. Cash flow provided by financing activities was $160,349 during the same period in the prior year.
